ONGC agrees to terms for joining Sangomar project offshore Senegal

Offshore staff

MELBOURNE, Australia – FAR has entered an agreement to sell its E&P interests offshore Senegal to ONGC Videsh Vankorneft.

This covers FAR’s full stake in the Rufisque, Sangomar, and Sangomar Deep Offshore (RSSD) blocks and the joint operating agreement.

ONGC has agreed to pay FAR $45 million on completion, and to reimburse the company for its share of working capital for the RSSD Project from Jan. 1, 2020 totaling $66.58 million, also payable on completion.

In addition, the transaction includes an entitlement to certain contingent payments capped at $55 million.

Early this year, FAR was finalizing financing for its share of the deepwater Sangomar oil field development and had completed a $100-million equity raise. But financing did not go ahead due to COVID-19 and the slump in the oil price.

The company had since been seeking a sale of its RSSD interests, which include 13.67% of the Sangomar exploitation area containing the Sangomar field, and 15% outside the exploitation area.

The transaction remains conditional on other RSSD co-venturers waiving pre-emption rights.

Operator Woodside currently expects Sangomar to come onstream in mid-2023.

11/11/2020